Cryptocurrency Wallet: A Deep Dive Into The Device Or Software That Keeps Your Digital Coins Safe And Accessible

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Crypto wallets keep those passwords safe which are needed for cryptocurrency access

Like your traditional currency notes, you just can't fold up your Bitcoin, Ethereum, Dogecoin, or any other cryptocurrency holdings and put them into your wallet. So, how do you safeguard the digital coins that you own? You can do so with the help of a cryptocurrency wallet. They exist in a variety of formats, ranging from hardware wallets – a physical device –  to apps that you can run on smartphones or computers. These wallets keep your private keys — the passwords that grant you access to the cryptocurrency — safe and accessible.

Here are the types of cryptocurrency wallets:

There are three main types of cryptocurrency wallets you can choose from — paper wallets, hardware or physical wallets, software or online wallets.

Paper wallets: Here you can write down your private key on a tangible medium, such as paper, and store it in a secure location. However, this isn't safe, especially if you are the sort to leave paper pieces scattered all over the house.

Hardware wallets: Also known as physical wallets, here the keys are stored in a device that's kept at a secure location and only connected to a computer when you wish to utilise your cryptocurrencies. Like paper wallets, even hardware wallets run the risk of being lost or destroyed.

Software or online wallets: In these wallets, the private keys are stored in an app or other software, or in an online wallet. This allows you to send, receive, and use cryptocurrencies in the same way you would perform transactions in an online bank account.

A software wallet is an example of hot storage, while the other two types of wallets — paper and hardware — are also known as cold storage. To put it another